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Currency
A '''currency', in the most specific use of the word, refers to money in any form when in actual use or circulation as a medium of exchange. A more general definition is that a currency is a system of money (monetary units) in common use, especially in a nation. The various currencies are recognized stores of value and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance. -''A human encyclopedia entry on currency. Currency is a sign of a modern economy, existing above barter for tangible goods. It can come in digital or physical form, and are backed by fiat or a valuable commodity. Hard currency can be stolen or counterfeited, so electronic fund transfers are the norm. More importantly, physical transactions cannot be easily tracked, making them ideal for tax evasion or the purchase of illegal goods. Known currencies Citadel Trade Credit The Citadel Trade Credit, or simply credit was established as the standard galactic trade currency by the Citadel's Unified Banking Act, a piece of legislation enacted by the Citadel Council. This legislation was drafted by the volus, due to their expertise in financial and commercial matters. The Act also laid out regulatory guidelines for determining the value and exchange rate of the credit in relation to the currencies of the individual Citadel member races. The credit has a managed floating exchange rate, calculated in real time by the central bank to maintain the average value of all participating currencies. Some regional currencies are worth more than a credit, and some less. When the Systems Alliance joined the Citadel, its various national treasuries were linked into the credit network. A human with a bank account of Mexican pesos, Japanese yen, or Indian rupees can purchase any item priced in credits at fair market value. All economies that participate in the credit network are required to price items in both local currency and credits. While near-universal, not all states are participating in the Citadel Trade Credit, as it means surrendering monetary policy independence to bodies headquartered in Citadel space. As result, some Terminus states' currencies are not directly exchangeable to the Credit, due to local political opposition to acceding to the Unified Banking Act. Omegan Eezo Notes A currency nominally backed by the vast hoards of element zero mined out of the asteroid that is Omega station. It is seen as shadow currency to the Citadel's trade credit in the Terminus systems. The notes came to existence some decades after the most recent occupation of Omega began. Commercial private banks established on the station accumulated stockpiles of element zero that is mined out of the asteroid, and the notes issued by said banks eventually based their value on this lifeblood commodity of interstellar civilization. Nominally, the notes can be redeemed for their face weight in eezo from the issuing bank. The common user of eezo notes values them as means of exchange in goods, but for the financially minded parties, the commodity backing enables a venue for speculation. Most recent incidence of eezo banks failing on Omega was in 2103. Category:Universe Category:Technology